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Roy's letter to the Trustees of PIMCO (Allianz) RCM Global Technology
Mailed: March 17, 2005
Answered: Never

To the Board of Trustees of the PIMCO RCM Global Technology fund:

I am a shareholder in the PIMCO RCM Global Technology fund, and I recently received a proxy statement related to the proposed elimination of a fundamental investment restriction of this fund. The information provided in this proxy statement is not adequate for me to make an informed vote.

Specifically, here is my problem: It is clear that a "yes" vote on this proxy is, in effect, an approval of the merger between my fund and PIMCO Innovation, and a "no" vote is a vote against the merger. Therefore, it is necessary for me to understand the economic benefits and detriments of the proposed merger as they relate to me, as an individual shareholder, before I can make an informed vote.

As I see it, the only proposed economic benefit of the merger is a 15 basis point reduction in the expense ratio that I pay. The major economic detriment of the proposed merger is the partial loss of my prorata share of the fund's capital loss carryforward. It is easy to calculate the dollar amount of the economic benefit stemming from the reduction in the expense ratio: For each $10,000 invested, I will save $15. However, given the information provided in the proxy statement, it is impossible to calculate the dollar amount of economic detriment related to the potential loss of the capital loss carryforward.

I am requesting that you, as trustees representing my interests, provide me with the approximate per share dollar amount of capital loss that I will lose if this merger goes through. This is the only way I can determine the true economic detriment of the proposed merger, compare that detriment to the potential economic benefit, and cast an intelligent vote.

If you prefer to communicate by email, you can reach me at [ ]. My phone number is [ ].

Thank you in advance for your attention to this important matter.

Yours truly,


Roy Weitz